Ethereum price prediction: $1,506 support in focus as ETH trades flat

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Ethereum drops 0.78% to $1,566 today

Highlights

Institutional demand for Ethereum weakened as U.S. spot ETFs saw $12.85 million in net outflows, led by BlackRock's ETHA.
Increased selling pressure emerged as dormant wallets offloaded significant ETH and the Ethereum Foundation announced major budget and workforce cuts.
Bearish momentum continues, with ETH consolidating below key resistance and high probability of a move toward $1,506–$1,626 in the near term.

ETF outflows and layoffs compound supply as institutional sentiment fades

Institutional demand for Ethereum has weakened, with net outflows from U.S. spot Ethereum exchange-traded funds totaling $12.85 million on June 26, and BlackRock's ETHA ETF accounting for nearly all of this amount, according to Dimsumdaily and Weex. Concurrently, four long-dormant Ethereum wallets liquidated tens of thousands of ETH near recent levels, heightening supply as ETF demand faltered, as reported by Lookonchain and Cryptoslate. The Ethereum Foundation also announced a 20% workforce reduction and a 40% budget cut, introducing uncertainty about the network’s development timeline and strategic capacity, as stated by Cryptonews.

Seller dominance amid persistent downside risk and oversold signals

On the technical front, ETH trades well below key hourly levels such as the MA-20 at $1,583, the MA-50 at $1,576, and remains under the daily MA-200 at $2,320, with the Ichimoku Kijun line at $1,586 acting as immediate resistance. The Moving Average Convergence Divergence (MACD) and the Awesome Oscillator both signal downward momentum, while the Average Directional Index (ADX) reads neutral. Relative Strength Index (RSI) stands at 40.77 and is considered in sell territory, and both Stochastic RSI and Commodity Channel Index (CCI) register as oversold, flagging persistent downside risk even as short-term volatility remains weak. The Bull/Bear Power indicator confirms seller dominance, while price action holds near session lows with an unresolved downside bias.

Downside risk elevated as resistance caps bullish reversal odds

In the short term, ETH is expected to consolidate within a volatility band of $1,506 to $1,626 over the next two to three trading days. The probability of a sustained move higher remains very low, while the chance of further downside is elevated. A break above $1,586 resistance would be needed for any bullish reversal scenario, while a decisive move below the $1,506 support level would likely open the way to deeper declines.

Viktoras Karapetjanc, expert at Traders Union, sees ongoing ETF outflows and foundation budget cuts as important drivers behind ETH’s current weakness. He believes cautious sentiment and sustained institutional withdrawals justify a neutral trading stance in the near term. The analyst notes that buyers must reclaim $1,586 to change the technical picture. 'If institutional flows stabilize and ETH holds above $1,506, I remain constructive on a medium-term recovery.'

Earlier, analysts noted that Ethereum remained under pressure from ongoing institutional outflows and persistent bearish momentum. The present analysis reinforces this view with fresh evidence of weakened ETF demand, increased supply from dormant wallets, and organizational cutbacks, making sustained downside risk the primary scenario for traders monitoring a potential breach of the $1,506 support level.

Source of Data: ETH Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.